Make Your Money Matter With These Financial Tips

It’s time to put our money where our hope is. With high unemployment rates and a falling stock market, Clevelanders are facing financial instability, but there are ways to rise above it all. On April 15, Engage Cleveland held a Zoom seminar with certified public accountant Matt Jones to provide a few key tips for financing during these challenging times. Here’s what we learned.

Get a clear picture. Scroll through your credit card bills and checking account statements to get a better idea of how you’re spending your money. Every month, take 20 minutes to track your total savings and expenses to get an idea of your net worth. Tracking this over the long term with apps such as Mint, You Need A Budget, Even or Personal Capital will help you get a better understanding of your finances. “Personally, I prefer just a simple Excel spreadsheet,” says Jones. “It’s more hands on.”

Cut spending where you can. Go through the expenses you’ve forgotten about, prioritize what’s important to you and budget accordingly. Say no to unnecessary spending, and start building an emergency savings fund if you can.  Jones used a controversial metaphor to describe his take on eating out: Put your own mask on first before you try to help somebody else. “It’s not a popular opinion, but I’m going to say it,” Jones warns. “Take care of yourself first and then support your local restaurants.”

Cash is king. Normally, Jones says that you can truly afford to make a big purchase if you can buy it twice with cash or put it on credit and pay the bill immediately. In a time of uncertainty, Jones suggests rethinking this rule of thumb. Avoid any larger purchases like cars, mortgages, pets or new student loans until the economy starts back up, which could take until the fall or longer. Spending larger amounts now means you may not have the money for an unexpected emergency later down the line. “I think this is going to get worse before this gets better, so I’m advocating being very conservative,” says Jones.

Invest in alternative education. Jones doesn’t recommend taking out more student loans during the recession, but he mentions that there are other ways to gain skills. Rather than going into further debt for a formal graduate school program, look to Khan Academy or free Harvard University and Yale University online classes to test your mettle during quarantine. “I get most of my books from the library,” says Jones. For financial literacy, Jones recommends the books I’ll Teach You to Be Rich by Ramit Sethi and The Simple Path to Wealth: Your Road to Independence and a Rich, Free Life by JL Collins.